Cholpon Mambetova	Takafumi Kadono

• SL is set to receive assistance for macroeconomic stability, power, agriculture, finance, tourism, and skills development
• Funding will be rolled out via policy-based loans, results-based lending, investment projects, and technical assistance projects
• Discussions currently underway with the Sri Lankan government on the specific type of support required

By Shabiya Ali Ahlam

Manila-based lender, the Asian Development Bank (ADB), has earmarked an indicative envelope of US$900 million for Sri Lanka’s development in 2025.

Subject to government approval, the island nation is set to receive assistance for macroeconomic stability, power, agriculture, finance, tourism, and skills development. The funding will be rolled out via policy-based loans, results-based lending, investment projects, and technical assistance projects, top representatives of the aid agency in Sri Lanka shared yesterday.

ADB Country Operations Head Cholpon Mambetova shared that discussions are currently underway with the Sri Lankan government on the specific type of support required.

In the Country Programming Mission scheduled for March, discussions will take place to finalise the pipeline of projects for 2025 to 2028.

“We do have investment projects and a number of technical assistance projects which are provided on a grant basis, mainly to support government institutions in capacity development, providing some analytical support, and conducting various institutional strengthening activities,” said Mambetova.

Within the first quarter of 2025 (1Q25), the ADB will hold a Tripartite Portfolio Review Meeting (TPRM), which will include the Ministry of Finance and other line ministries.

The TPRM will put the spotlight on the ongoing US$4 billion portfolio, assessing the implementation of projects, issues faced, and potential solutions to challenges, if any. “So far, we have had quite a good year. And in terms of project implementation, we don’t have any projects that are at risk,” she said.

In 2024, the ADB rolled out projects amounting to US$ 808 million, which include: In 2024, the ADB rolled out projects amounting to US$ 808 million which are; Enhancing Small and Medium-sized Enterprise Finance Project (US$ 100 million), Power Sector Reforms and Financial Stability Programme – subprogramme 1 and 2 (US$ 300 million), Water Supply and Sanitation Reform Programme – subprogramme ( US$ 100 million), Mahaweli Water Security Programme – tranche 3 (US$ 93 million), Financial Sector Stability and Reform Programme – Sub programme 2 (US$ 200 million), and Energy Activities Supporting Facility – Activity 1 (US$ 15 million). “I think in the context of Sri Lanka, it’s important to notice that we have a multilateral development role. When no other banks are lending, when the country cannot access the capital market, when the country needs financing, we provide that.
“We do not provide budget support. We make sure that the country undertakes structural and policy reforms that will address inherent weaknesses so that the country can recover or build back better, more strongly, and be on a more sustainable, inclusive trajectory,” ADB Country Director Takafumi Kadono said. Kadono pointed out that the projects financed by the ADB are top-priority ones, which undergo a “rigorous due diligence process.”
“Investments that we finance are the critical ones and not just the ‘good to have,’” he said.